User:JSFarman/Hipgnosis Songs Fund

Hipgnosis Songs Fund is a British Guernsey-registered music IP investment and song management company. Founded on the premise that hit songs are long-term predictable assets unaffected by economic cycles, which will increase in value as the worldwide music streaming market continues to grow, Hipgnosis Songs Fund acquires proven songs and songwriter catalogs and actively manages them to drive synchronization revenues.

Hipgnosis Songs Fund has raised nearly US $800 million to fund acquisitions since it was established in 2017. In June 2019, at the close of its first full year as a publicly-traded company, its catalog totaled more than 5,000 songs; of those 5000, approximately 2000 were #1 hits, and 2,000 had hit the Top 10.

History
Hipgnosis Songs Fund was founded by Merck Mercuriadis, who has managed artists including Elton John, Iron Maiden, Morrissey and Beyoncé, and musician Nile Rodgers, the producer and/or composer of more than (X) hits. Mercuriadis said in a February 2019 interview: "Nile and I, one day, just started riffing off of these ideas of how do we change this system, how do change what’s going on today where the songwriter – who provides the most important component in an artist having success –  is the lowest person on the totem pole?" Mercuriadis believed that a rights and song management company with substantial assets would have the leverage to change the existing economics of publishing for songwriters, and in 2017, with a strategy to build capital by offering investors pure-play exposure to songs and associated musical intellectual property rights in place, Hipgnosis Songs Fund was founded. The company was named after Hipgnosis, the art and design group Storm Thorgerson and Aubrey Powell.

Hipgnosis Songs Fund went public in July, 2018; an earlier plan to float the company in the UK had been postponed to conduct further due diligence. Its prospectus noted a "unique market opportunity as technology disruption is changing the way music is consumed. The pace at which revenues from music streaming replace and increase those earned from physical and permanent download sales is forecast to grow significantly. Songs constantly trigger royalty income payments and produce an attractive level of income which can persist for decades and is protected by copyright law." At its July 10, 2018 launch on the British Stock Exchange, Hipgnosis Songs Fund raised $262 million, well over its goal. Trading as SONG, it was one of two investment trust IPOs that were oversubscribed that year. Following the listing, the company reported that it has acquired a 75 percent interest in its first music rights catalog from musician The-Dream for $23.75 million. Among other hits, the 302-song collection included Justin Bieber’s "Baby", Rihanna’s "Umbrella" and Beyonce’s "Single Ladies (Put a Ring on It)”. 111 By the end of 2018 -- guided by investment adviser The Family (Music) Limited, an advisory board that includes  Mercuriadis, Rodgers, Starrah, The-Dream, David A. Stewart, Nick Jarjour, Bill Leibowitz, Ian Montone, and Jason Flom -- Hipgnosis had acquired the Poo Bear catalogue of 214 songs, including Justin Bieber's "What Do You Mean?" and the English language version of "Despacito";  a 37.5% stake in Chic co-founder Bernard Edwards' catalogue,  which comprised 290 songs including "Everybody Dance", "Le Freak," "I Want Your Love" and "Good Times"; the 121-song catalogue of TMS, including "Don't Be So Hard On Yourself" for Jess Glynne, and "Wings" and "DNA" for Little Mix; and the 121-song catalogue of Tricky Stewart, who co-wrote many of The-Dream's hit songs, including "Me Against The Music" (by Britney Spears and Madonna), and Mariah Carey's "Touch My Body." Prior to a second raise of $185 million in April 2019, Hipgnosis acquired the 182-song catalogue of Giorgio Tuinfort, including more than 15 UK Top 10 singles with David Guetta; Itaal Shur (209 songs, including "Smooth"), the 249-song catalogue of Johnta Austin, ("We Belong Together" by Mariah Carey, "Be Without You" by Mary J Blige); 588 songs by Sean Garrett, including "Yeah", Ciara's "Goodies, and "Check on It by Beyoncé; and the 245 song catalogue of Rico Love, including ""Without You" by David Guetta. In October 2016, the company acquired Timbaland's catalogue, which included all six albums by Missy Elliot, and the five Justin Timberlake albums that  Timbaland produced. The catalog is comprised of 108 albums and songs with collective sales in excess of 32 million.

In its first results as a public company, Hipgnosis Songs Fund reported a yield of 6.1% on assets, while the net value of its underlying catalogs rose and its holding's synchronization value increased. The value of the portfolio as of March 31 2019 had also increased..

A third round of $63 million was raised in August 2019. In October 2019, it raised an additional $295 million, bringing Hipgnosis' "acquisition warchest" to nearly $800 million US. As of October 2019, Hipgnosis Songs Fund holdings included more than 6000 songs, with hits from every decade since the 1950s, valued at $1.3 billion.

Portfolio

 * Benny Blanco
 * The-Dream
 * Dave Stewart
 * Starrah
 * Tricky Stewart
 * Jamie Scott
 * Teddy Geiger
 * Bernard Edwards
 * Sean Garrett
 * Ari Levine
 * Poo Bear
 * Johnta Austin
 * Itaal Shur
 * Giorgio Tuinfort
 * Al Jackson, Jr.
 * TMS
 * Rico Love
 * Chainsmokers
 * Neal Schon
 * Sam Hollander
 * Timbaland